| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 92 | 11.6x | 17.8x | Top tier | |
Growth | 23 | 0.8% | 7.1% | Bottom tier | |
Quality | 38 | 8.7% | 4.5% | Bottom tier | |
Safety | 48 | 4.1x | 2.6x | Around median | |
Capital Return | 62 | 0.75% | 2.12% | Around median | |
Momentum | 16 | -44.9% | 2.9% | Bottom tier | |
Sentiment | 94 | 8 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Group 1 Automotive operates as a specialized automotive retail group across the United States and the United Kingdom, generating revenue from new and used vehicle sales, aftersales services and parts, and finance and insurance F&I products. Earnings resilience depends on the mix between vehicle sales, whose margins are affected by pricing and volumes, and the more stable aftersales business; in Q1 fiscal 2026, same-store customer-pay gross profit in the United States increased by approximately 6%, while repair order count rose 2.5%. In the United Kingdom, same-store parts and service gross profit increased 20%, and customer-pay service activity rose 18%.
In Q2 fiscal 2026, the company reported revenue of $5.4 billion, gross profit of $860.6 million, net income of $103.3 million, and earnings per share of $8.64. These figures represent a gross profit margin of approximately 15.9% and a net income margin of approximately 1.9%. Compared with Q1 fiscal 2026, revenue remained at $5.4 billion, but gross profit declined from $877.9 million, net income from $130.2 million, and earnings per share from $10.85.
Revenue for the twelve months ended in 2026 was approximately $22.2 billion, with gross profit of $3.5 billion, net income of $290.1 million, and earnings per share of approximately $24.50. This compares with revenue of $22.6 billion, gross profit of $3.6 billion, and net income of $325.2 million in fiscal 2025. This mix indicates that aftersales growth and improvements in some United Kingdom metrics are facing continued pressure from vehicle volumes, used vehicle margins, and operating costs.
Automated analysis for informational purposes only — not investment advice.
The average analyst price target is $380, within a range of $330 to $425, and is accompanied by a neutral consensus rather than a buy consensus. The average target is below the 52-week range high of $488.39, while the wide gap between the lowest and highest targets reflects uncertainty about whether the $50 million in cost savings and aftersales growth can offset declining net income and pressure on used vehicle margins.
Figures in the text are as of 2026-08-31; the live price is shown at the top of the page.
Group 1 Automotive sells new and used vehicles in the United States and the United Kingdom and also generates income from parts and services and finance and insurance F&I products. Revenue was $5.4 billion and gross profit was $860.6 million in Q2 fiscal 2026. In Q1 fiscal 2026, aftersales stood out, with same-store customer-pay gross profit in the United States growing by approximately 6% and same-store parts and service gross profit in the United Kingdom growing 20%.
Management saw market weakness and an unacceptably high ratio of U.S. selling, general and administrative expenses to gross profit during January and February 2026. Therefore, by the end of April 2026, it eliminated approximately 700 U.S. employees, generating approximately $35 million in annual savings, and added approximately $15 million from canceling contracts and vendors. The plan targets total savings of $50 million annually, or approximately $12.5 million per quarter when the full impact is realized.
In Q1 fiscal 2026, the virtual F&I system had been installed in one-third of U.S. stores and handled 20% of transactions within those stores. A virtual agent can complete 7 to 10 transactions per day, compared with approximately 3 transactions for an F&I manager working through the traditional process. Management said the system improved transaction times, reduced compensation costs and employee turnover, and increased per-unit returns among lower-performing employees, with continued expansion through the remainder of 2026 and into 2027.
The aftersales business helps offset weak vehicle volumes and pressure on used vehicle margins. In Q1 fiscal 2026, same-store customer-pay and warranty revenue in the United States increased by approximately 3% and 5%, while the corresponding gross profit increased by approximately 6% and 9%. In the United Kingdom, same-store customer-pay and warranty revenue increased by more than 6% and 12% in local currency, alongside a 3% increase in technicians.
The company acquired one Skoda store and two Volkswagen stores and disposed of one underperforming Volkswagen store and one underperforming Skoda store. It also signed a framework agreement with Geely to open three stores in Q2 fiscal 2026 within facilities it already owns, with modest branding modifications. In parallel, it closed one of nine JLR stores under the exit plan and was conducting active negotiations regarding several of the remaining stores.
The primary risks are weak vehicle affordability, elevated negative equity, and pressure on used vehicle sourcing and margins. Gross profit per used unit declined by approximately 3% in the United States and 2% in local currency in the United Kingdom during Q1 fiscal 2026. Net income also declined from $130.2 million in Q1 to $103.3 million in Q2 fiscal 2026, while increases in National Insurance and the minimum wage added $3 million to United Kingdom costs in Q1.
